South Korean talent outfit SM Entertainment announced that they will establish a studio in China in order to support EXO's Chinese member Lay in his solo activities.

Individual artist studios were first introduced by major entertainment and media giants such as China's Huayi Brothers and had since been adapted by many other entertainment agencies to aid their artists' activities in the country. The purpose of these studios is to operate by allowing artists to still be connected to their managing company while on overseas promotions.

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In addition, these studios give the artists freedom to hire their own staff and make their own decisions with regard to their schedules and activities. Reports say that the studios will be headed by the artist using it, but funding will come from their managing companies and sponsors. Their schedules and contracts will also be handled by the established studio.

SM Entertainment is following the footsteps of other talent outfits and announced that they will be opening a studio for their artists working in China, prompted by the EXO member's current solo filming activities in the country.

In the 23-year old idol's case, SM Entertainment is allowing him to concentrate on his China activities. Moreover, the company is allowing him to work with companies which are not necessarily affiliates of said company. However, SM Entertainment will still be his mother company.

During the official press conference for the opening of the company's China studio, Lay stated that he will be using the studio in order prove his intention to honor the terms and conditions mentioned in his contract with SM Entertainment.

He said, "[I] will do my best to help SM Entertainment to expand more in China."

According to speculations, SM Entertainment's decision to open a studio in China is due to the fact that they have lost three of their Chinese artists - Super Junior's Hangeng in 2009 and EXO members Kris Wu and Lu Han last year - due to issues regarding their contract.

TagsEXO Lay, EXO, Lay, Zhang Yi Xing, SM Entertainment